|Received:||3/14/2005 9:24:06 PM|
|Agency:||Federal Trade Commission|
|Rule:||Notice of Proposed Study on the Effects of Credit Scores and Credit-based Insurance Scores on the Availability and Affordability of Financial Products|
Comments:Credit scores are helpful to an extent but are being used too extensively in granting or denying credit. Also, some agencies (namely large collections agencies such as Asset Acceptance LLC and NCO, for examples) are using credit scores against consumers by reporting incorrect information to CRAs PURPOSELY to screw up peoples scores more than allowed by law simply to coerce people to pay whether legally owed or not since they impact scores more with their illegal reporting and collection activities. By the way, Asset Acceptance is no better than CAMCO and deserves the same FTC enforced fate. Using scores for insurance purposes is simply a way for insurance companies to raise rates because a large amount of the US population has less than desirable credit. This ties in with collection agencies because a company such as Asset Acceptance purposely reports inaccurate information thus damaging a consumer's scores in excess of the law, then that person applies for insurance and is charged a higher rate simply because their scores have been tanked by a collection agency! This also applies to credit cards and loans. Scores are NOT necessarily indicative of a person's credit worthiness. Personally, I was caught by credit cards when I was 18 and uneducated. I am now 29, responsible, single parent but am STILL dealing with the debts (and the accompanying credit scores) that I incurred when I was 18. Comparing my credit worthiness when I was 18 to now is absurd but its the truth. I still have an Asset Acceptance account from a credit card that was charged off many years ago and is not legally collectible and not legally reportable but due to the illegal practices of the agency (who I am currently suing in Federal Court) the alleged debt still stands on my credit reports and still greatly affects my credit scores. I had to pay substantially more money for my auto insurance policy solely because of the collection account than someone without the collection. The whole system needs revamping, more policing (SHUTTING DOWN VIOLATING COLLECTION AGENCIES JUST LIKE CAMCO BUT DO IT FASTER BECAUSE THEY HAVE PLENTY OF TIME TO VICTIMIZE CONSUMERS WHO DO NOT KNOW THEIR RIGHTS BEFORE THEY ARE CAUGHT), no insurance rating based on FICO scores (it should be outlawed through federal statute because it is not objective and there has never been any conclusive proof that low scores equal high risk). Thank you for taking the time to read my comments. I hope the FTC will value them as being from a responsible consumer who is still being victimized by law breaking collection agencies such as Asset Acceptance LLC.